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Tuesday, October 7, 2014

Oct 07 2014

Somewhat unusual day. Wins and losses, as far as odds are concerned, are not always evenly distributed, they can go in clusters. That's normal but today was somewhat of an aberration as we had two large and very defined clusters. Morning was marked by mostly stops, and in the afternoon we got 8 wins in a row, erasing morning losses and going into profitable territory. End result is what matters but I'd still prefer more smooth curve :)_______________________________________________Ahead
of the Close Market Snapshot

US Indices:
- Dow Jones -1.4%
- S&P500 -1.3%
- Nasdaq -1.4%

- "One step forward / two steps back" has been the trend over the
past couple weeks. Industrials are leading the decline, followed by healthcare,
services, and tech. Utilities are still the safe-haven with marginal gains.

Fixed-Income: Worries about the upcoming earnings season and a steady rise in
volatility is shifting investor funds from equities to bonds in a big way. The
Vix is near its 2014-highs approaching 17 level, while the 2-10 spread has also
narrowed to approach its lowest level of the year. In European periphery, Greece
10-yr is another 21bps on top of the 11bp increase overnight.
- US 2-yr: -3bps at 0.50%
- 10-yr: -7bps at 2.35%;
- 30-yr: -7bps at 3.05%;
- 2-10 spread: -4bps at 1.84%

Energy:
- WTI Nov crude oil down about 20c to $88.74, approaching last week's lows just
above $88 level; Short-term Outlook from EIA projecting "household
expenditures for natural gas, heating oil, electricity, and propane to decrease
this winter heating season compared with last winter, which was 11% colder than
the previous 10-year average nationally."

Metals:
- Spot Gold $1,210/oz; Up for 2nd straight day and biggest 2-day increase since
June 17-18th.
- Spot Silver $17.17/oz, retreating after testing a 1-week high around $17.60
- Dec Copper $3.03/lb; Flat despite the broad risk-off flow after a brief dip
below $3.02 in early trade